№ 4/2018

№ 4/2018

Nauk. pr. NDFI 2018 (4): 47–58https://doi.org/10.33763/npndfi2018.04.047

FINANCIAL AND ECONOMIC REGULATION

BARTOSH Serhii ¹

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9491-991X

Topical questions of budget decentralization in Ukraine

The article examines the achievements of budget decentralization in Ukraine, which has been an important component of state policy in the field of local self-government, its foundations and legislative basis since 2014. The purpose of the article is to analyze the results of fiscal decentralization and the associated difficulties in order to identify areas for improving the financial capacity of local governments and preventing potential risks. The author outlines the following problems of budget decentralization: regulation of regional development and satisfaction of each community’s needs; a review and clear structuring of own and delegated powers of local self-government bodies; expansion of their financial base; transition to the system of targeted transfers in order to compensate expenditures of local self-government bodies through the exercise of their delegated functions; ensuring a high level of transparency in the use of budget funds by local self-government bodies, etc. The analysis of revenue growth of local budgets and expansion of their source base is carried out; prospects for its further increase in accordance with the national legislation are outlined. The probable risks of fiscal decentralization are identified: an excessive level of centralization of the budget system, an unresolved issue of division of powers between local governments and executive power, a low level of qualification of employees of local self-government bodies, etc. The author makes a conclusion about the gradual formation of a new model of intergovernmental fiscal relations, the existence of positive trends in improving the socio-economic situation in the regions, and proposes separate measures aimed at solving problems arising in the process of fiscal decentralization.

Keywords:decentralization reform, fiscal decentralization, local budgets, decentralization risks, intergovernmental relations

JEL: Н11, Н61, Н73, Н77

Bartosh S. . Topical questions of budget decentralization in Ukraine / S. Bartosh // Наукові праці НДФІ. - 2018. - № 4. - C. 47-58.

Article original in Ukrainian (pp. 47 - 58)

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